Chapter2 - Chapter Two The Time Value of Money MGMT 109...

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1 Chapter Two The Time Value of Money MGMT 109 Managerial Finance Professor Lu Zheng Preview of Chapter Two Preview of Chapter Two FV of a single cash flow PV of a single cash flow FV and PV of a stream of cash flows The general case Special cases Annuity Perpetuity Constant Growth Perpetuities Constant Growth Annuities Using the time line – example Compounding (EAR vs. APR)
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